I’ve always believed that owning a home is something to be proud of. Something to strive for. Most people used to agree with me – but more and more I hear home ownership getting a ton of hate. What happened?
Purchasing a home was always an ideal in this country that motivated people towards financial prosperity. Renting was always a short term solution until you could buy a home. Now it seems that many people actually prefer to rent and take pride in it. How did we get here?
The History of Home Ownership in Canada
The first half of the century saw a sharp increase in demand for homes. So what did the government do? They introduced programs that ensured Canadians didn’t need to have 100% of the purchase price of a home to buy it.
The Canada Mortgage and Housing Corporation was created in 1945 to help war veterans purchase homes, then matured over time to help all Canadians purchase homes with less than 25% down. That went down to 5% in the early 90s when they also began to allow the use of RRSPs towards a down payment.
Then came 2008. The subprime mortgage crisis in the States forced the Canadian government to tighten regulations and make it more difficult to secure a mortgage. Still to this day, it’s never been more difficult to own a home.
Don’t Wait On the Government to Change Things
The days of people-first mortgage policies are over. We might never get back to a place where the government does anything meaningful to help Canadians own homes. Luckily, we are fortunate enough to live in a country where we don’t need the government to enact meaningful change.
If you want to buy a home, or a second home, or an investment property, there are a ton of innovative lenders and financial institutions that are now making this all possible. You don’t need a government program or a Big Six Bank.
You can buy with 5% down. You can get a mortgage cashback of up to $9,000. You can qualify for a mortgage of $500,000 earning as little as $90,000. And if you are self employed and can’t show all your income, there are creative and legitimate solutions for you too. Despite what the haters may say, there is no shortage of ways to make home ownership work.
It’s Time To Start Talking About Solutions
My advice? Stop listening to angry people and reading angry posts. It’s easier to be angry than to actually do something. Which is why people have started to glorify renting over owning. If you’re at a crossroads, don’t settle for the easy route. Do your research, talk to a professional, and see if there’s a way you can make buying work. It’s time to bring back pride in home ownership.
Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.
Steve Garganis: 416-224-0114; steve@canadamortgagenews.ca
